USD/CAD Forex Signal

Last Thursday’s signals were not triggered, as there was no bearish price action at 1.3155.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm New York time today only.

Short Trade

  • Go short after the next bearish price action rejection following the next touch of 1.3281.
  • Put the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Long Trades

  • Go long after the next bullish price action rejection following the next touch of 1.3182 or 1.3144.
  • Put the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/CAD Analysis

I wrote last Thursday that I would look to trade reversals from the edges of the range between about 1.3050 and 1.3150. In the end we got a breakout above the highs, and significantly, Friday saw this pair close at a 50-day high, which puts the edge with the bulls. The U.S. Dollar is generally strong, but is advancing much more strongly against other currencies, perhaps because a recovery in the price of Crude Oil over recent hours is helping the Canadian Dollar hold up.

In any case, we see bullish waves with retracements holding at support, so I will maintain a bullish bias today above 1.3182.

USDCAD

There is nothing important due today concerning either the CAD or the USD. It is a public holiday today in the U.S.A.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.